Tsukuruba : (Updated) Partial Corrections of the “Non-consolidated Financial Results for the Six Months Ended January 31, 2021 (Japanese GAAP)”

March 16, 2021

Company Name:	TSUKURUBA Inc.
Representative:	Hiroki Murakami
Representative Director, CEO
(Code number:2978, TSE Mothers Market)
Contact:	Ryohei Koike Director, CFO
（TEL:[phone]）

(Updated) Partial Corrections of the "Non-consolidated Financial Results for the Six Months Ended January 31, 2021 (Japanese GAAP)"

TSUKURUBA Inc. announces that there are matters that should be corrected in the "Non-consolidated Financial Results for the Six Months Ended January 31, 2021 (Japanese GAAP)", which was released on March 15, 2021.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Non-consolidated Financial Results for the Six Months Ended January 31, 2021

[Japanese GAAP]

Company name: TSUKURUBA Inc. Stock exchange listing: Tokyo Code number: 2978

URL:https://tsukuruba.com/ Representative: Hiroki Murakami Contact: Ryohei Koike

Phone: [phone]

Representative Director, CEO Director, CFO

Scheduled date of filing quarterly securities report: March 15, 2021 Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes Schedule of quarterly financial results briefing session: Yes

March 15, 2021

(Amounts of less than one million yen are rounded down)

1. Non-consolidated Financial Results for the Six Months Ended January 31, 2021 (August 01, 2020 to January 31, 2021)

(1) Non-consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Net income
Six months ended January 31, 2021 January 31, 2020	Million yen 760 992	% (23.37) -	Million yen (118) 36	% - -	Million yen (112) 36	% - -	Million yen (119) 28	% - -

Basic earnings per share	Diluted earnings per share
Six months ended January 31, 2021 January 31, 2020	Yen (12.62) 3.20	Yen - 2.83

(2) Non-consolidated Financial Position

Total assets	Net assets	Capital adequacy ratio
As of January 31, 2021 July 31, 2020	Million yen 3,205 2,162	Million yen 992 1,074	% 30.3 49.6

(Reference) Equity:

As of As ofJanuary 31, 2021:

July 31, 2020:

¥ ¥

971 million 1,073 million

2. Dividends

Annual dividends
1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
Fiscal year ended July 31, 2020 Fiscal year ending July 31, 2021	Yen - -	Yen 0.00 0.00	Yen -	Yen 0.00	Yen 0.00
Fiscal year ending July 31, 2021 (Forecast)	-	0.00	0.00

(Note) Revision to the forecast for dividends announced most recently: No

(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending July 31, 2021 :

Commemorative dividend Special dividend

- yen - yen

3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending July 31, 2021(August 01, 2020 to July 31, 2021)

(% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Net income	Basic earnings per share
Full year	Million yen 1,472	% (14.3)	Million yen (563)	% -	Million yen (573)	% -	Million yen (587)	% -	Yen (62.0)

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

• (1) Accounting policies adopted specially for the preparation of quarterly Non-consolidated financial statements: No

• (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement

  • 1) Changes in accounting policies due to the revision of accounting standards: No

  • 2) Changes in accounting policies other than 1) above: No

  • 3) Changes in accounting estimates: No

  • 4) Retrospective restatement: No

(3) Total number of issued shares (common shares)

1) Total number of issued shares at the end of the period (including treasury shares):

January 31, 2021:

July 31, 2020:

9,869,700 shares 9,799,700 shares

2) Total number of treasury shares at the end of the period:January 31, 2021:

July 31, 2020:

335,600 shares 335,600 shares

3) Average number of shares during the period:

Six months ended January 31, 2021:

Six months ended January 31, 2020:

9,507,244 shares 8,996,100 shares

*This quarterly report of financial results is out of scope from quarterly review procedures conducted by independent auditors. *Explanation about appropriate usage of business forecasts and other special notes

The forecasts above are based on the judgments made in accordance with information currently available. Forecasts therefore include risks and uncertainties. Actual figures may differ from these forecasts due to subsequent changes in the circumstances.

Quarterly Non-consolidated Financial Statements
Quarterly Non-consolidated Balance Sheets
(Thousand yen)
As of July 31,2020	As of January 31,2021
Assets
Current assets
Cash and deposits	1,613,625	2,632,568
Accounts receivable - trade	20,847	21,036
Work in process	3,161	3,759
Other	22,754	22,884
Allowance for doubtful accounts	(300)	(300)
Total current assets	1,660,089	2,679,949
Non-current assets
Property, plant and equipment	380,880	394,525
Intangible assets
Software	-	57,521
Total intangible assets	-	57,521
Investments and other assets
Leasehold and guarantee deposits	101,916	54,631
Other	19,485	18,506
Total investments and other assets	121,401	73,138
Total non-current assets	502,281	525,185
Total assets	2,162,370	3,205,134

(Thousand yen)As of July 31,2020

As of January 31,2021

Liabilities

Current liabilities

Current portion of bonds payable Current portion of long-term borrowings Accounts payable - other

Income taxes payable Provision for bonuses Other

Total current liabilities Non-current liabilities

Bonds payable

Convertible bond-type bonds with share acquisition rights

Long-term borrowings Other

Total non-current liabilities Total liabilities

Net assets

Shareholders' equity

Share capital Capital surplus Retained earnings Treasury shares

Total shareholders' equity

Share acquisition rights Total net assets

Total liabilities and net assets

40,000 80,000

115,407 119,125

83,371 79,251

7,788 345

- 34,411

58,998 82,635

305,565

395,768

160,000 300,000

- 700,000

602,799 798,961

19,198 17,792

781,997 1,087,562

1,816,753 2,212,522

610,183 1,322,777

17,275 1,136,558

(797,006) (119,949)

(62,421) (62,421)

1,073,531 1,276 1,074,807 2,162,370

971,462 21,150 992,612 3,205,134

Quarterly Non-consolidated Statements of Income

Quarterly Non-consolidated Statements of Income (For the six months)

(Thousand yen)For the six months ended January 31,2020

For the six months ended January 31,2021

Net sales	992,667	760,725
Cost of sales	267,737	167,625
Gross profit	724,930	593,099
Selling, general and administrative expenses	688,433	711,496
Operating profit (loss)	36,496	(118,396)
Non-operating income
Interest income	656	7
Subsidy income	-	21,142
Other	310	227
Total non-operating income	966	21,378
Non-operating expenses
Interest expenses	894	3,492
Interest on bonds	-	694
Bond issuance costs	-	10,017
Other	95	887
Total non-operating expenses	990	15,090
Ordinary profit (loss)	36,472	(112,109)
Extraordinary income
Gain on reversal of share acquisition rights	-	1,276
Gain on sales of non-current assets	-	961
Gain on reversal of asset retirement obligations	-	1,895
Total extraordinary income	-	4,133
Extraordinary losses
Loss on liquidation of investments	-	3,095
Office transfer related expenses	-	8,531
Total extraordinary losses	-	11,627
Profit (loss) before income taxes	36,472	(119,603)
Income taxes - current	6,727	346
Income taxes - deferred	987	-
Total income taxes	7,714	346
Profit (loss)	28,757	(119,949)

Quarterly Non-consolidated Statements of Cash Flows
(Thousand yen)
For the six months	For the six months
ended January 31,2020	ended January 31,2021
Cash flows from operating activities
Profit (loss) before income taxes	36,472	(119,603)
Depreciation	28,406	11,847
Increase (decrease) in allowance for doubtful accounts	200	-
Increase (decrease) in provision for bonuses	-	34,411
Interest and dividend income	(656)	(7)
Subsidy income	-	(21,142)
Gain on sales of non-current assets	-	(961)
Interest expenses	894	3,492
Interest expenses on bonds	-	694
Bond issuance costs	-	10,017
Gain on reversal of share acquisition rights	-	(1,276)
Share-based remuneration expenses	-	11,523
Commission expenses	-	579
Gain on reversal of asset retirement obligations	-	(1,895)
Office transfer related	-	8,531
Loss on liquidation of investments	-	3,095
Decrease (increase) in trade receivables	818	(188)
Decrease (increase) in inventories	(2,521)	(705)
Increase (decrease) in accrued consumption taxes	(50,718)	12,320
Increase (decrease) in accounts payable - other	(18,714)	(6,110)
Increase (decrease) in advances received	9,771	4,125
Other, net	(10,030)	1,942
Subtotal	(6,076)	(49,311)
Interest and dividends received	128	7
Interest paid	(881)	(3,263)
Proceeds from subsidy income	-	21,142
Income taxes (paid) refund	(6,194)	507
Net cash provided by (used in) operating activities	(13,024)	(30,916)

(Thousand yen)For the six months ended January 31,2020

Cash flows from investing activities

Proceeds from withdrawal of time deposits Purchase of property, plant and equipment

Proceeds from sales of property, plant and equipment Purchase of intangible assets

Purchase of investment securities Payments for asset retirement obligations Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits

Collection of loans receivable

Net cash provided by (used in) investing activities Cash flows from financing activities

Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from issuance of bonds Redemption of bonds

Proceeds from issuance of convertible bond-type bonds with share acquisition rights

Proceeds from exercise of employee share options Proceeds from issuance of share acquisition rights Payment of commission

Other, net

Net cash provided by (used in) financing activities

Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

1,000

For the six months ended January 31,2021

46,730

(86,336)

(25,175)

-

1,099

(46,969)

(57,521)

(9,900)

-

-

(8,100)

(15,171)

-

-

44,220

3,972

-

(153,405)

1,252

260,000 (60,120) 189,982 (20,000)

- (33,930)

- 17,880

- 9,627

(4,359) (579)

(2,831)

-

(41,120)

1,095,338

(207,549)

1,065,673

1,371,971

1,519,889

1,164,422

2,585,562